Daily monitor

Ukrinterenergo, the Ukrainian state intermediary on all electricity export contracts, resumed electricity sales in April 2008 to Poland, now at the significantly higher price of USD 55 per MWh, a 96% increase since initial sales were interrupted in Sept. 2007.

Ukraine and Moldova have agreed on upping the price of Ukrainian exported electricity to Moldova in the next year to the Ukrainian domestic market price.

Official statistics on Ukraine’s foreign trade show exports grew 28.5% to USD 13.8 bln in 1Q08.

Astarta Holding NV [AST PW], one of the top Ukrainian sugar mills, released its 1Q 2008 financial results, revealing net revenues increased 57% YoY to USD 29.8 mln, EBITDA surged 109% YoY to USD 12.8 mln, net income totaled USD 8.4 mln (up 80% YoY) and a 43% YoY increase in sugar sales.

At Stakhaniv Carriage Works’ [SVGZ, U/R] AGM May 19, shareholder’s approved the decision to increase the statutory fund via emission of 37.7 million ordinary shares in documentary form at USD 0.21 par value.

On May 19, the PFTS announced that Zaporizhstal [ZPST UZ, BUY] will be re-listed on this main Ukrainian stock exchange.

DTEK, the owner of the Comsomolets Donbassa coal mine [SHKD UZ, N/R], has attracted a USD 150 mln loan with an interest rate of Libor+3% and a two-year credit term.

Official unemployment rate continues falling, 1Q08 FDI hit historical record and surplus from 1Q08 foreign services reach USD 1.2 bln: according to the newly released official statistics of Ukraine. Official unemployment in April 2008 was only 2.2% versus 2.6% in April 2007.

EBRD’s yearly summit is being held in Kiev (Ukraine) this time. EBRD’ sand Ukraine’s top officials spoke during the event. EBRD voiced its plans to invest USD 1.5-1.7 bln into Ukraine this year and above EUR 1 bln per annum in the future. The key investments will be made in energy saving and infrastructure development projects.

Motor Sich’s [MSICH, Buy] new plans involve capital expenditures of some USD 80 mln aimed at creating new helicopter engine assembly platforms in Russia.